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My Thinking is Blockchain is Safe

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Avatar for chrishoffman
Written by   45
1 year ago
Topics: Blockchain, Crypto, Safe

As I mentioned in the title, the blockchain is secure. I will try to explain the reasons for this with small and explanatory examples as far as I can in my article. I will use a little bit of accounting language.

Traditional accounting method

Keeping an account is something everyone is familiar with. Especially now, you don't need to bring cash when going out. How much money you have is equal to the balance of various income and expense calculations in your bank account, Alipay or WeChat wallet.

So what is accounting? For example:

Mike's monthly salary is 10,000 yuan. In the salary payment process, the bank will record: 10,000 yuan for the corporate account and 10,000 yuan for the Mike account. After the salary was paid, Mike took advantage of the WeChat payment to buy a piece of clothing that cost 500 yuan on the Double 11. Currently, WeChat was recording: Mike's account was reduced by 500 yuan and the trader's account was increased by 500 yuan.

We accept this method of bookkeeping based on trust to accountants (banks, WeChat Pay and other third party entities). However, these are centralized accounting systems and it is difficult to avoid accounting errors and corruption caused by system breakdowns, company bankruptcies or other reasons.

You can have only one ledger, if everyone is involved in bookkeeping and the ledger is synchronized in real time, the ledger will become more open, transparent and more reliable. This way, any problems on either side will not affect the secure functioning of accounting. Obviously this is a better method of accounting than accounting by individual institutions, which is essentially a method of bookkeeping on the blockchain.

Blockchain accounting method

In the blockchain system, the accountant is selected according to a set of competition rules, and those who participate in the competition have a chance to win and become accountants. We assume that this rule is a Rubik's Cube competition. The first person to finish the Rubik's Cube gets the right to bookkeeping. This reflects one feature of blockchain accounting: decentralized accounting. The accountant is randomly generated by playing the Rubik's Cube game to make sure the accountant is no longer a centralized organization.

In each Rubik's Cube competition, there is only one winner who is responsible for accounting, and the accounting information is packaged (that is, a new block is mined) to create a data packet called a block. Once other players have verified that they are correct, copy (download and sync) this new block to the blockchain they are protecting; Although this is distributed ledger to all players, it ensures that everyone's ledger data is consistent (blockchain information above, same). This reflects the second important feature of blockchain accounting. All nodes (players participating in the game) keep the same ledger, which is very convenient for reconciliation.

So how can I make sure the accountant doesn't cheat and keep fake accounts?

This is achieved through validation and reward mechanisms. All players will verify the authenticity of the winning player's account. If the account is incorrect, other players will not confirm the account and the winning player will waste the opportunity to account. What's more, it means a generous reward each time you get the bookkeeping right, and a fake bookkeeping is equivalent to automatically giving up rewards.

Therefore, the winning player will not keep fake accounts for the sake of their benefit.

Even if there is a saboteur deliberately causing trouble, it will eventually fail other players' verification because only the correct calculation will be recognized by all players. This ensures the accuracy of the accounting data.

When the accounting is complete, a new block is issued. Block information has been corrected. It has its own unique data fingerprint (ie hash value. By hashing the block, the block's information is generated) Hash value, any change in the block will cause a big change in the hash value of the block).

In the next round of the game, the new winning player registers a new invoice page (mining in a new block) and the head of the new invoice (block header) has to save the data fingerprint of the previous invoice page (the hash value of the previous block), the previous invoice and the current invoice have a net which in turn is closely related.

If the invoice data on the previous page is changed, the data fingerprint (hash value) will be changed and will not correspond to the hash value saved on the invoice on the next page. All players can understand that this is an invalid chain that has been tampered with and can throw it away.

The header of the previous block also records the hash value of the previous block so the entire blockchain is interlocked and has a strict sequence, and as long as the data of a particular block is falsified, all subsequent blocks will change the proportion of the block, whose Compute data can be described as "a move that affects the whole body." This is the third main feature of blockchain accounting: all blocks in the chain are interconnected and algorithms are used to ensure that the entire information chain is not tampered with.

Summary

The blockchain generates bookkeeping rights through a competition mechanism to ensure the decentralization of bookkeeping nodes and the consistency of book data of all bookkeeping nodes. The new block references the hash value of the previous block to make sure all chain data is in a strict order and cannot be changed. With the above methods, the transaction information on the blockchain is ensured to be reliable, so blockchain is a machine that creates trust.

I am waiting for your likes and comments.

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Avatar for chrishoffman
Written by   45
1 year ago
Topics: Blockchain, Crypto, Safe
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